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13 May 2013 | By Alistair Driver DEFRA Secretary Owen Paterson has urged EU Ministers not to compromise on co-financing transfers of money between the pillars of the Common Agricultural Policy (CAP). Mr Paterson briefly outlined the UK’s position on CAP reform in Brussels as EU Ministers discussed progress towards the goal of a final deal next month. In one of the main issues that remain unresolved, EU Ministers are under pressure from MEPs, the European Commission and EU farming organisations to agree to ‘co-finance’ any funds transferred via modulation from Pillar One (direct payments) of the CAP to Pillar Two covering rural development under the reformed CAP. The Council of Ministers agreed in their March negotiating mandate to allow member states and regions to transfer 15 per cent of their Pillar One direct payment pot to bolster rural development scheme, without any requirement to match these funds, as is currently the case with modulation. Addressing his EU counterparts on Monday, Mr Paterson said all member states had to make difficult compromises to reach agreement in March. “Further compromises can only be in the context of a full package of issues. It will be essential that the final package is allied to the deal reached by heads of government on the Multiannual Financial Framework (CAP budget) February, for example on capping and co-financing rates,” he said. Irish Farming Minister Simon Coveney, chairing the talks on behalf of the Irish presidency of the EU, is representing the Council of Ministers in ‘trilogue’ negotiations with the European Parliament and the European Commission. The main focus of Monday’s talks were the proposed young farmers’ and small farmers’ scheme and whether they should be voluntary or compulsory and the definition of ‘active farmer’ that will determine who is eligible for payments under the reformed regime. Mr Coveney stressed he was not seeking to change to the Council’s negotiating mandate, but rather to ‘establish the extent of any potential room for manoeuvre on these points as we try to reconcile the differing positions of the three institutions’. Member states are generally in favour of the young farmers’ and small farmers’ being voluntary, while the European Parliament wants the young farmers’ scheme to be compulsory. Mr Paterson strongly backed the voluntary position saying member states themselves are ‘best placed’ to decide what sort of support they should offer.  He said he could see ‘no justification for small farmers opting out of complying with requirements like cross compliance’. He said he was also ‘quite clear’ the active farmer scheme should be voluntary, stressing that in all aspects of the new policy, the priority should be to ‘avoid unnecessary complexity for farmers and paying agencies’. EU Agriculture Minister Dacian Ciolos told Ministers he remained confident a deal at the June Council of Ministers meeting is still ‘doable’, despite a number of areas agreement is still some way off. “As far as I concerned I am still committed to it,” he said. Mr Ciolos warned Ministers that in order to get a deal the negotiating mandate they submitted to the Irish presidency in March will have to change in order to secure a final agreement, as will the positions of the EU Parliament and the Commission. He said the young farmer and small farmer schemes must be compulsory and stressed the importance of retaining a ‘common’ policy. He reiterated his concern about giving too much flexibility to member states in how the implement the new regime. “My objective is to have a CAP that works for all member states but not an uncommon agricultural policy,” Mr Ciolos said. A total of twelve trilogues has taken place across the four CAP reform dossiers since April 11. Mr Ciolos said two-thirds of these meetings were still to come as efforts continue to ensure next month’s Council of Ministers meeting represents the ‘home straight’. Continue reading →